The IRS has revealed that over 1.1 million people across the country have unclaimed tax refunds for 2021, with more than $1 billion still waiting to be claimed. The deadline to file a return and claim these refunds is fast approaching—April 15, 2025. If you haven’t filed your 2021 tax return, now’s the time to act.
How Much Could You Be Owed?
According to IRS estimates, the median refund amount for unclaimed 2021 returns is $781. That means half of the eligible refunds are more than $781, and half are less. Keep in mind that this estimate doesn’t include additional credits like the Recovery Rebate Credit or other tax benefits that could increase your refund.
What Happens If You Don’t File?
By law, taxpayers generally have three years to file a return and claim a refund. If you miss that deadline, the unclaimed money becomes the property of the U.S. Treasury. So, if you’re owed money from 2021, you must file by April 15, 2025, or risk losing it forever.
Beyond just getting your refund, filing your 2021 return could make you eligible for valuable credits. For example, the Earned Income Tax Credit (EITC) was worth up to $6,728 in 2021 for qualifying taxpayers. The income thresholds for eligibility in 2021 were:
- $51,464 ($57,414 for married couples filing jointly) with three or more children
- $47,915 ($53,865 for married couples filing jointly) with two children
- $42,158 ($48,108 for married couples filing jointly) with one child
- $21,430 ($27,380 for married couples filing jointly) with no children
Potential Roadblocks to Receiving Your Refund
If you haven’t filed tax returns for 2022 and 2023, your 2021 refund could be delayed. Additionally, any refund amount may be used to pay outstanding debts, such as unpaid taxes, child support, or overdue federal loans.
Need to File? Here’s How to Get Your Documents
If you need to file your 2021 return but are missing key documents, there are multiple ways to retrieve the necessary information:
- Use Your IRS Online Account: Log in or create an account at IRS.gov to access your tax records, including wage and income statements and tax return transcripts.
- Request Documents from Employers or Banks: If you’re missing W-2s or 1099s from 2021, contact your employer, bank, or other payers to request copies.
- Order a Transcript by Mail: If you can’t access your online IRS account, use the ‘Get Transcript by Mail’ tool on IRS.gov or call 800-908-9946.
- Submit Form 4506-T: Filing this form with the IRS allows you to request a wage and income transcript, showing records of W-2s, 1099s, and other income-related documents. However, this method can take several weeks, so it’s best to try the online options first.
- The best option is to contact Morris and Associates. We can help retrieve your tax transcript from the IRS for you and determine the maximum amount of your refund.
State-by-State Breakdown of Potential Refunds
The IRS has provided estimates for how many people in each state may be eligible for unclaimed refunds and the median refund amount by state. Here’s a look at some of the states with the highest number of potential claims:
- California: 116,300 individuals, median refund of $600 total $92,299,600
- Texas: 102,200 individuals, median refund of $810, total $94,792,200
- Florida: 69,800 individuals, median refund of $732, total $61,087,200
- New York: 73,000 individuals, median refund of $995, total $72,477,100
- Georgia: 38,500 individuals, median refund $720, total $33,515,300
For a full breakdown by state, visit the IRS website or review their latest tax refund estimates.
Act Now Before It’s Too Late
If you believe you might have an unclaimed refund from 2021, don’t wait until the last minute. Filing your return now ensures you receive any refund you’re owed before the deadline passes. Contact Morris and Associates to help file your 2021 tax return.
Time is running out—make sure you claim what’s yours before April 15, 2025!
